Core Insights - J.M. Smucker has achieved positive organic top-line growth in the current year despite facing challenges from record levels of green coffee inflation [2] - The company has restructured its portfolio over the past several years, benefiting from a mix of iconic brands and higher growth brands [2] - Recent leadership updates have been announced to enhance the execution of Smucker's long-term growth strategy and improve profitability and earnings [2] Company Overview - Mark Smucker serves as the CEO, President, and Chair of the Board, with Tucker Marshall as CFO and Crystal Beiting as VP of Investor Relations and FP&A [3]

Summary of J. M. Smucker Company Conference Call Company Overview - **Company**: The J. M. Smucker Company (NYSE:SJM) - **Event**: 2026 Conference on February 18, 2026 - **Key Leadership**: Mark Smucker (CEO), Tucker Marshall (CFO), Crystal Beiting (VP, Investor Relations) Core Industry Insights - **Industry**: Consumer Goods, specifically focusing on coffee, snacking, and pet food - **Market Position**: Over 95% of U.S. retail channel sales come from categories where the company holds either the number 1 or number 2 branded position [6][5][4] Key Points and Arguments 1. **Growth Strategy**: The company has a clear strategy to drive growth and achieve long-term financial goals, having transformed its portfolio over the years [4][3] 2. **Financial Performance**: Anticipated net sales for the fiscal year are over $9 billion, marking the 7th consecutive year of top-line growth when excluding divested pet food brands [5][6] 3. **Profitability Focus**: The company is focused on improving profitability and earnings growth, with significant margin expansion expected in the near term [5][7] 4. **Leadership Changes**: Recent leadership updates aim to enhance execution of the long-term growth strategy and improve profitability [4][3] 5. **Innovation and New Products**: Approximately $300 million in net sales is expected from new products launched in the last two years, reflecting a 35% increase compared to the previous period [7][6] 6. **Coffee Segment**: The coffee category remains strong, with the company holding leading brands like Folgers and Dunkin'. Café Bustelo is expected to surpass $500 million in net sales this fiscal year, driven by innovative marketing and product expansion [11][10] 7. **Frozen Handheld and Spreads**: The Uncrustables brand is projected to achieve $1 billion in annual net sales, growing at a 20% CAGR over the past decade [17][18] 8. **Peanut Butter and Fruit Spreads**: The Jif brand is modernizing its offerings with a new line, Jif Simply, to meet evolving health preferences [32][33] 9. **Pet Segment**: The company has leading brands in the pet food category, with significant growth potential in both dog and cat food markets [34][37] 10. **Sweet Baked Snacks**: The company is working on stabilizing the Hostess brand through SKU reduction and operational efficiency, while also launching new products to drive growth [41][42] Additional Important Insights - **Capital Deployment**: The company is committed to a disciplined capital deployment model, focusing on organic growth, debt reduction, and shareholder returns through dividends and share repurchases [49][50] - **Free Cash Flow**: The goal is to generate over $1 billion in free cash flow annually, supporting long-term growth and margin expansion [50][52] - **Market Trends**: The company is adapting to consumer preferences, particularly in the pet food segment, where premiumization and e-commerce trends are driving growth [34][39] Conclusion - The J. M. Smucker Company is positioned for continued growth with a strong portfolio, clear strategic focus, and commitment to profitability and shareholder value. The leadership changes and innovative product strategies are expected to enhance performance across its various segments [52][45]

CAGNY CONFERENCE 2026 BUSINESS UPDATE FEBRUARY 18, 2026 MARK SMUCKER CHIEF EXECUTIVE OFFICER, PRESIDENT AND CHAIR OF THE BOARD FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements, such as projected net sales, operating results, earnings, and cash flows, that are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from any future results, performance, or achievements expressed or implied by those forward-looking statements. Us ...

This story was originally published on Food Dive. To receive daily news and insights, subscribe to our free daily Food Dive newsletter. J.M. Smucker is restructuring its top leadership to consolidate functions and double down on artificial intelligence, the Uncrustables maker said Tuesday.  The company will eliminate its chief operating officer position and give new management responsibilities to five senior executives. It is also creating the role of chief technology officer, whose responsibilities will i ...

Group 1 - The J.M. Smucker Co. will present at the 2026 CAGNY Conference on February 18, 2026, at 2:00 p.m. Eastern Standard Time [1] - The Company is set to release its third quarter fiscal 2026 financial results on February 26, 2026, with a press release available at 7:00 a.m. Eastern Standard Time [2] - A live Q&A session with the CEO and CFO will occur on the same day at 9:00 a.m. Eastern Standard Time [2] Group 2 - The J.M. Smucker Co. offers a diverse range of brands in North America, leading in categories such as coffee, peanut butter, and pet food [4] - The Company emphasizes its commitment to quality products and ethical operations while aiming for business growth and positive societal impact [4]

Core Viewpoint - The J. M. Smucker Company (NYSE:SJM) is experiencing steady earnings momentum, with positive adjustments to future earnings estimates following its Q2 results [2] Financial Performance - In Q2, net sales reached $2.3 billion, an increase of $58.9 million, or 3%, compared to the same period last year [4] - The coffee segment reported a profit margin of 18.2% in Q2, with expectations for margins to improve in Q3 and exceed 20% in Q4 as tariff pressures ease [4] Business Segments - The Sweet Baked Snacks business and the Hostess brand are showing ongoing progress, with management noting improved performance in convenience stores [3] - Pet treats are expected to return to growth, and Uncrustables is on track to surpass $1 billion in sales by the end of the year [3] Analyst Outlook - BofA raised its price target for SJM to $120 from $118 while maintaining a Neutral rating, citing the company's adjusted EPS exceeding expectations [2] - The firm increased its FY27 adjusted EPS estimates to $10 from $9.8 and FY28 forecasts to $10.80 from $10.60, indicating potential for algorithm-level growth [2]

Core Viewpoint - Dividend stocks have underperformed compared to tech and AI stocks this year, but they still hold long-term value due to their ability to provide consistent income and reduce portfolio volatility [1][2]. Group 1: Importance of Dividend Stocks - Dividend-paying stocks can help meet ongoing income or liquidity needs and historically reduce volatility during market downturns [2]. - Companies with stable financials are better positioned to maintain dividends, with a focus on payout ratios to assess sustainability [3]. Group 2: Methodology for Stock Selection - The article screened for companies with a market cap above $10 billion and at least 10 years of dividend growth, identifying 15 stocks with positive analyst sentiment and high hedge fund interest [6]. Group 3: The J. M. Smucker Company (NYSE:SJM) - The J. M. Smucker Company has 41 hedge fund holders and has seen an increase in its price target from $118 to $120 by BofA following positive Q2 results [9][10]. - The company reported Q2 net sales of $2.3 billion, a 3% increase year-over-year, with a coffee segment profit margin of 18.2% [12][11]. Group 4: Colgate-Palmolive Company (NYSE:CL) - Colgate-Palmolive has 56 hedge fund holders but faced a downgrade to Hold from Buy due to rising raw material costs impacting profitability [14][15]. - The company reaffirmed its long-term strategy and highlighted its focus on innovation and efficiency improvements [16][17]. Group 5: American Electric Power Company, Inc. (NASDAQ:AEP) - American Electric Power has 56 hedge fund holders, with a price target increase from $121 to $125 by JPMorgan, reflecting positive adjustments in the utilities sector [20]. - The company anticipates a 7%-9% long-term EPS growth outlook, driven by increasing demand from data centers, and has raised its capital investment plan to $72 billion [22][21].

Financial Data and Key Metrics Changes - The company reported a sequential acceleration in comparable net sales growth, with a projected top line growth of 4% on a reported basis and about 5.5% comparable growth year over year [40][68] - The second quarter segment profit margin in coffee was 18.2%, with expectations for slight improvement in the third quarter but not surpassing 20% [37] Business Line Data and Key Metrics Changes - Organic sales in the sweet baked snacks segment exceeded expectations, with improved performance noted in convenience stores and a focus on a streamlined portfolio [7][20] - The sweet baked snacks bottom line did not meet expectations due to costs absorbed during the transition of the bakery network, but improvements are anticipated in the third and fourth quarters [20][21] - The pet portfolio is expected to see low single-digit growth in the third and fourth quarters, driven by the Milk-Bone and Meow Mix brands [25][24] Market Data and Key Metrics Changes - The company anticipates a $75 million impact from coffee tariffs in the third quarter, which will be a headwind for fiscal 2026 but a tailwind for fiscal 2027 [10][16] - The spreads portfolio, particularly peanut butter, faced challenges in the second quarter, contributing to a reduced net sales expectation for frozen handhelds and spreads [27][30] Company Strategy and Development Direction - The company is committed to investing in long-term brand health, with marketing dollars projected to increase year-over-year, maintaining about 5.5% of net sales [18] - A three-pronged plan to strengthen the portfolio by eliminating 25% of SKUs has shown positive results, particularly for core brands [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver financial outlooks for the fiscal year while advancing long-term objectives to increase shareholder value [70] - The company expects to see acceleration in growth across various segments, with a focus on innovation and marketing support [41][48] Other Important Information - The company is on track to achieve $975 million in free cash flow this fiscal year, supporting $500 million in debt repayment [62] - The pace of innovation has accelerated across various product lines, with notable advancements in Uncrustables and pet snacks [61] Q&A Session Summary Question: Insights on sweet baked goods performance - Management noted that the improvement in sweet baked snacks is sustainable, with a focus on core brands and a successful relaunch of Susie Q's [7] Question: Impact of tariffs on coffee pricing - The majority of the $0.50 tariff impact is related to green coffee tariffs, which will be a tailwind for fiscal 2027 [10] Question: SG&A guidance and marketing plans - Marketing investments will increase year-over-year, with a focus on growth brands while managing discretionary spending [18] Question: Profit results in sweet baked snacks - The second quarter's profit results did not meet expectations due to transitional costs, but improvements are expected in subsequent quarters [20] Question: Expectations for pet treats - Management anticipates strong growth for Milk-Bone in the third quarter, supported by marketing campaigns and innovation [24] Question: Reduced net sales expectation for frozen handhelds - The reduction is primarily driven by the spreads portfolio, with Uncrustables still on track for significant growth [27][30] Question: Coffee margin expectations - Coffee margins are expected to improve slightly in the third quarter but will not exceed 20% [37] Question: Tariff impact confirmation - The $75 million tariff expense is confirmed to be entirely due to coffee tariffs [58]

Financial Data and Key Metrics Changes - The company reported a sequential acceleration in comparable net sales growth, with a projected top line growth of 4% on a reported basis and about 5.5% comparable growth year over year [40][68] - The second quarter segment profit margin in coffee was 18.2%, with expectations for slight improvement in the third quarter but not surpassing 20% [37] Business Line Data and Key Metrics Changes - Organic sales in the sweet baked snacks segment exceeded expectations, with improved performance noted in convenience stores and a focus on a more streamlined portfolio [7][20] - The sweet baked snacks bottom line did not meet expectations due to costs absorbed during the transition of the bakery network, but improvements are anticipated in the third and fourth quarters [20][21] - The pet portfolio is expected to see low single-digit growth in the third and fourth quarters, driven by brands like Milk-Bone and Meow Mix [25][24] Market Data and Key Metrics Changes - The company anticipates a strong lap in the third quarter for the pet treats category, particularly for Milk-Bone, which is expected to return to growth [22] - The frozen handheld and spreads segment is projected to see a reduction in net sales expectations by over $80 million for the full year, primarily driven by the spreads portfolio [27][28] Company Strategy and Development Direction - The company is committed to investing in the long-term health of its brands, with marketing dollars projected to increase year-over-year, maintaining about 5.5% of net sales [18] - A three-pronged plan to strengthen the portfolio by eliminating 25% of SKUs has been implemented, leading to improved performance in core brands [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver financial outlook for the fiscal year while advancing long-term objectives to increase shareholder value [70] - The company expects to benefit from a tariff-off environment in fiscal 2027, which should provide a tailwind to the coffee portfolio [42][43] Other Important Information - The company is on track to generate $975 million in free cash flow this fiscal year, supporting $500 million in debt repayment [62] - The pace of innovation across various product lines has accelerated, with notable advancements in Uncrustables and pet snacks [61] Q&A Session Summary Question: Insights on sweet baked goods performance - Management noted that the improvement in sweet baked snacks is sustainable, with a focus on core brands and a successful relaunch of Susie Q's [7] Question: Impact of tariffs on coffee pricing - The majority of the $0.50 tariff impact is related to green coffee tariffs, which will be a tailwind in fiscal 2027 [10][16] Question: SG&A guidance and marketing plans - Marketing investments will increase year-over-year, with a focus on growth brands while managing discretionary spending [18] Question: Profit results in sweet baked snacks - The second quarter's bottom line for sweet baked snacks did not meet expectations due to transition costs, but improvements are expected in subsequent quarters [20] Question: Expectations for pet treats in the back half - Management anticipates strong growth for Milk-Bone in the third quarter, supported by marketing efforts and innovation [22][24] Question: Reduced net sales expectation for frozen handheld and spreads - The reduction is primarily driven by the spreads portfolio, with Uncrustables still on track for significant growth [27][28] Question: Coffee margin expectations - Coffee margins are expected to improve slightly in the third quarter but will not exceed 20%, with a target of over 20% in the fourth quarter [37] Question: Elasticity and pricing in coffee - The current outlook for the coffee portfolio includes 16% year-over-year growth, with pricing offset by a decline in volume mix [45] Question: Innovation pace and its impact - The pace of innovation has accelerated, with significant contributions from new products across various categories [61]

Financial Data and Key Metrics Changes - The company reported a second quarter segment profit margin in coffee of 18.2% with expectations for slight improvement in the third quarter but not surpassing 20% [41] - The company anticipates a net $0.50 impact from tariffs in fiscal year 2026, which will transition to a tailwind in fiscal year 2027 [11][17] Business Line Data and Key Metrics Changes - Organic sales in the Sweet Baked Snacks segment exceeded expectations, with a focus on core brands leading to improved performance [6][7] - The Sweet Baked Snacks bottom line did not meet expectations due to costs associated with the transition of the bakery network [21] - The pet portfolio is expected to see low single-digit growth in the third and fourth quarters, driven by brands like Milk Bone and Meow Mix [26] Market Data and Key Metrics Changes - The company is seeing strong growth in the away-from-home segment, contributing to overall sales momentum [45] - The Uncrustables brand is projected to reach $1 billion in sales by the end of the fiscal year, with low double-digit growth anticipated in the second half [54] Company Strategy and Development Direction - The company is committed to investing in long-term brand health, with marketing dollars projected to be up year over year [19] - A three-pronged plan to strengthen the portfolio by eliminating 25% of SKUs has been implemented, leading to improved performance in core brands [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver financial outlook for the fiscal year while advancing long-term objectives to increase shareholder value [75] - The company expects to see benefits from tariff relief in fiscal year 2027, contributing positively to the bottom line [48] Other Important Information - The company is focused on innovation across various segments, with notable advancements in Uncrustables and pet snacks [65] - The company aims to reduce net debt to EBITDA from around four times to three times by fiscal year 2027 [67] Q&A Session Summary Question: How sustainable is the improvement in Sweet Baked Snacks? - Management noted that the improvement is sustainable due to a focused portfolio and strong brand performance [6][8] Question: What is the impact of tariffs on coffee pricing? - The majority of the $0.50 tariff impact is related to green coffee, which will be a tailwind in fiscal year 2027 [11][17] Question: What are the expectations for marketing plans and SG&A? - Marketing investments will increase year over year, while SG&A spend has been sharpened across the network [19] Question: What is the outlook for the pet treats category? - Management expects a strong lap in the third quarter, with Milk Bone anticipated to return to growth [23][24] Question: How is the company addressing pricing in the current environment? - The company is committed to holding prices and providing value across its broad portfolio [71] Question: What is the expected growth for Uncrustables? - Uncrustables is expected to achieve low double-digit growth in the second half, supporting its path to $1 billion in sales [54] Question: How is the company managing innovation? - The pace of innovation has accelerated, with significant developments in various product lines [65] Question: What is the company's strategy for debt reduction? - The company plans to generate $975 million in free cash flow this fiscal year to support debt paydown [67]